Question 1

Small,independent public schools not subject to many of the regulations imposed on traditional public schools,including restrictions on teacher qualifications,are called:

Accepted Answer

A)  magnet schools. 
B)  charter schools. 
C)  parochial schools. 
D)  private schools. 
A)  magnet schools. 
B)  charter schools. 
C)  parochial schools. 
D)  private schools.

Question 2

If the government were to directly operate schools,it would be intervening through _________.If the government were to require that everyone attend school through age 16 without intervening in any other way,it would be intervening through__________.

Accepted Answer

A)  public provision; private provision 
B)  the price mechanism; the quantity mechanism 
C)  the quantity mechanism; the price mechanism 
D)  public provision; the quantity mechanism 
A)  public provision; private provision 
B)  the price mechanism; the quantity mechanism 
C)  the quantity mechanism; the price mechanism 
D)  public provision; the quantity mechanism

Question 3

Loans made from private banks for which the government promises repayment in the event of default are referred to as:

Accepted Answer

A)  direct student loans. 
B)  deferred student loans. 
C)  subsidized student loans. 
D)  guaranteed student loans. 
A)  direct student loans. 
B)  deferred student loans. 
C)  subsidized student loans. 
D)  guaranteed student loans.

Question 4

Which of the following is NOT a problem of school vouchers?

Accepted Answer

A)  consumer sovereignty 
B)  excessive school specialization 
C)  school segregation 
D)  inefficient and inequitable use of public resources 
A)  consumer sovereignty 
B)  excessive school specialization 
C)  school segregation 
D)  inefficient and inequitable use of public resources

Question 5

If the government justifies intervention in education by asserting it wants to enable income mobility,which justification for intervening is it using?

Accepted Answer

A)  credit market failure 
B)  productivity spillovers 
C)  redistribution 
D)  to produce a less criminally inclined public 
A)  credit market failure 
B)  productivity spillovers 
C)  redistribution 
D)  to produce a less criminally inclined public

Question 6

Government is involved in education because society benefits from:

Accepted Answer

A)  a large workforce and lower wages. 
B)  fewer public sector jobs. 
C)  credit market failures. 
D)  more income mobility. 
A)  a large workforce and lower wages. 
B)  fewer public sector jobs. 
C)  credit market failures. 
D)  more income mobility.

Question 7

A politician states that areas in which the population is poorly educated have more break-ins than other areas and that,consequently,the government should intervene in the education market.Leaving aside whether the politician's conclusion about the cause of the difference is correct,which justification for government intervention in the education market is the politician using?

Accepted Answer

A)  credit market failure 
B)  productivity spillovers 
C)  redistribution 
D)  to produce a less criminally inclined public 
A)  credit market failure 
B)  productivity spillovers 
C)  redistribution 
D)  to produce a less criminally inclined public

Question 8

Someone states that since parents always have their children's best interests at heart,government should not intervene in the education market.According to this person,which of the following is NOT a legitimate reason for government intervention in the education market?

Accepted Answer

A)  credit market failure 
B)  productivity spillovers 
C)  to produce a less criminally inclined public 
D)  the failure of family utility maximization 
A)  credit market failure 
B)  productivity spillovers 
C)  to produce a less criminally inclined public 
D)  the failure of family utility maximization

Question 9

Which of the following is NOT true about Pell Grants?

Accepted Answer

A)  Pell Grants are provided to low-income families to pay for higher education. 
B)  Pell Grant eligibility is entirely merit-based. 
C)  Te Pell Grant amount depends on the applicant's characteristics. 
D)  The Pell Grant program intends to provide more opportunities to low-income families. 
A)  Pell Grants are provided to low-income families to pay for higher education. 
B)  Pell Grant eligibility is entirely merit-based. 
C)  Te Pell Grant amount depends on the applicant's characteristics. 
D)  The Pell Grant program intends to provide more opportunities to low-income families.

Question 10

Competitive pressures faced by schools are likely to be _________ when there are ___________ other communities nearby than when there are not.

Accepted Answer

A)  higher; many 
B)  lower; many 
C)  unchanged; many 
D)  higher; few 
A)  higher; many 
B)  lower; many 
C)  unchanged; many 
D)  higher; few

Question 11

Someone states that educated workers are no better at teaching coworkers valuable job skills than are uneducated workers.According to this person,which of the following is NOT a legitimate government intervention in the education market?

Accepted Answer

A)  credit market failure 
B)  productivity spillovers 
C)  redistribution 
D)  to produce a less criminally inclined public 
A)  credit market failure 
B)  productivity spillovers 
C)  redistribution 
D)  to produce a less criminally inclined public

Question 12

Someone argues that vouchers would lead to the brightest students leaving the public school system.This criticism expresses a concern about:

Accepted Answer

A)  excessive school specialization. 
B)  segregation. 
C)  provision of education as a natural monopoly. 
D)  vouchers as an inefficient and inequitable use of public resources. 
A)  excessive school specialization. 
B)  segregation. 
C)  provision of education as a natural monopoly. 
D)  vouchers as an inefficient and inequitable use of public resources.

Question 13

A politician claims that government should intervene in the education market to "even the playing field" for rich and poor families.Which justification for government intervention in the education market is the politician using?

Accepted Answer

A)  credit market failure 
B)  productivity spillovers 
C)  redistribution 
D)  to produce a less criminally inclined public 
A)  credit market failure 
B)  productivity spillovers 
C)  redistribution 
D)  to produce a less criminally inclined public

Question 14

Jaeger and Page (1996)show that if two individuals both have 4 years of college but one doesn't graduate while the other does,the one with a bachelor's degree will earn 25% more,suggesting that the degree signals higher productivity levels for graduates relative to non-graduates.
(a)Assume that students who attend college for four years acquire identical amounts of human capital,regardless of whether they graduate.Why might people who graduate in 4 years be more productive workers than those who attend college for 4 years but do not graduate?
(b)Suggest reasons why the student with the degree might have acquired different human capital in college than the student who attended college for 4 years but did not graduate.

Accepted Answer

(a)There might be several characteristic

Question 15

You hear someone say that government should intervene in the education market because uneducated parents don't fully understand the value of education for their children.Leaving aside whether the politician's conclusion about the cause of the difference is correct,which justification for intervention is the politician using?

Accepted Answer

A)  credit market failure 
B)  productivity spillovers 
C)  to produce a less criminally inclined public 
D)  the failure of family utility maximization 
A)  credit market failure 
B)  productivity spillovers 
C)  to produce a less criminally inclined public 
D)  the failure of family utility maximization

Question 16

Studies that identify the effect of a voucher program on the achievement of students who use vouchers typically do so by comparing the achievement of students who used the voucher to switch to a different school to the achievement of otherwise similar students who wanted to but could not use the voucher to switch to a different school.Will such studies capture the effects of increased competition on the inefficient schools in the voucher-eligible area? Explain.

Accepted Answer

No,they will not capture the effects of

Question 17

If the government were to give every student a voucher to redeem at any school,it would be intervening through _________.If the government were to mandate no tuition cost more than $6,000/year without intervening in any other way,it would be intervening through _________.

Accepted Answer

A)  public provision; private provision 
B)  the price mechanism; the price mechanism 
C)  the quantity mechanism; the price mechanism 
D)  the price mechanism; the quantity mechanism 
A)  public provision; private provision 
B)  the price mechanism; the price mechanism 
C)  the quantity mechanism; the price mechanism 
D)  the price mechanism; the quantity mechanism

Question 18

According to economist Sam Peltzman,by providing a fixed level of public education,government intervention:

Accepted Answer

A)  may lower educational attainment by inducing families to choose higher-quality private schools over lower-quality public schools. 
B)  may lower educational attainment by inducing families to choose lower-quality public schools over higher-quality private schools. 
C)  will not affect educational attainment because families will choose the highest-quality school they can afford. 
D)  will definitely improve educational attainment because families will choose the highest-quality school they can afford. 
A)  may lower educational attainment by inducing families to choose higher-quality private schools over lower-quality public schools. 
B)  may lower educational attainment by inducing families to choose lower-quality public schools over higher-quality private schools. 
C)  will not affect educational attainment because families will choose the highest-quality school they can afford. 
D)  will definitely improve educational attainment because families will choose the highest-quality school they can afford.

Question 19

Several states mandate that school district boundaries follow county lines,while other states allow several school districts to locate in the same county.Assume that county size is approximately the same in both of these groups of states.Suppose both groups are considering implementing school vouchers,and proponents in both groups argue that increased competition will lead to greater efficiency.Which group of states is more likely to achieve greater efficiency gains? Hint: Think about Tiebout sorting.

Accepted Answer

Tiebout sorting is likely to be more of

Question 20

President Barack Obama appointed Arne Duncan to be the Secretary of Education in 2009.Discuss Secretary Duncan's methods to address education woes during his tenure as CEO of the Chicago public school system as well as his efforts during his term as Secretary of Education.Summarize the views of his supporters and opponents.

Accepted Answer

Duncan addressed "nonperforming" public

Small,independent public schools not subject to many of the regulations imposed on traditional public schools,including restrictions on teacher qualifications,are called:

If the government were to directly operate schools,it would be intervening through _.If the government were to require that everyone attend school through age 16 without intervening in any other way,it would be intervening through__.

Loans made from private banks for which the government promises repayment in the event of default are referred to as:

Which of the following is NOT a problem of school vouchers?

If the government justifies intervention in education by asserting it wants to enable income mobility,which justification for intervening is it using?

Government is involved in education because society benefits from:

Someone states that since parents always have their children's best interests at heart,government should not intervene in the education market.According to this person,which of the following is NOT a legitimate reason for government intervention in the education market?

Which of the following is NOT true about Pell Grants?

Competitive pressures faced by schools are likely to be _ when there are ___ other communities nearby than when there are not.

Someone states that educated workers are no better at teaching coworkers valuable job skills than are uneducated workers.According to this person,which of the following is NOT a legitimate government intervention in the education market?

Someone argues that vouchers would lead to the brightest students leaving the public school system.This criticism expresses a concern about:

A politician claims that government should intervene in the education market to "even the playing field" for rich and poor families.Which justification for government intervention in the education market is the politician using?

If the government were to give every student a voucher to redeem at any school,it would be intervening through _.If the government were to mandate no tuition cost more than $6,000/year without intervening in any other way,it would be intervening through _.

According to economist Sam Peltzman,by providing a fixed level of public education,government intervention:

Why Study Public Finance

Theoretical Tools of Public Finance

Empirical Tools of Public Finance

Budget Analysis and Deficit Financing

Externalities- Problems and Solutions

Externalities in Action- Environmental and Health Externalities

Public Goods

Cost-Benefit Analysis

Political Economy

State and Local Government Expenditures

Social Insurance- the New Function of Government

Social Security

Unemployment Insurance, disability Insurance, and Workers Compensation

Health Insurance I- Health Economics and Private Health Insurance

Health Insurance Ii- Medicare, medicaid, and Health Care Reform

Income Distribution and Welfare Programs

Taxation- How It Works and What It Means

The Equity Implications of Taxation- Tax Incidence

Taxes on Labor Supply

Taxes on Savings

Taxes on Risk Taking and Wealth

Taxation of Business Income

Fundamental Tax Reform and Consumption Tax

Filters

Exam 11: Education

Small,independent public schools not subject to many of the regulations imposed on traditional public schools,including restrictions on teacher qualifications,are called:

If the government were to directly operate schools,it would be intervening through _________.If the government were to require that everyone attend school through age 16 without intervening in any other way,it would be intervening through__________.

Loans made from private banks for which the government promises repayment in the event of default are referred to as:

Which of the following is NOT a problem of school vouchers?

If the government justifies intervention in education by asserting it wants to enable income mobility,which justification for intervening is it using?

Government is involved in education because society benefits from:

Someone states that since parents always have their children's best interests at heart,government should not intervene in the education market.According to this person,which of the following is NOT a legitimate reason for government intervention in the education market?

Which of the following is NOT true about Pell Grants?

Competitive pressures faced by schools are likely to be _________ when there are ___________ other communities nearby than when there are not.

Someone states that educated workers are no better at teaching coworkers valuable job skills than are uneducated workers.According to this person,which of the following is NOT a legitimate government intervention in the education market?

Someone argues that vouchers would lead to the brightest students leaving the public school system.This criticism expresses a concern about:

A politician claims that government should intervene in the education market to "even the playing field" for rich and poor families.Which justification for government intervention in the education market is the politician using?

If the government were to give every student a voucher to redeem at any school,it would be intervening through _________.If the government were to mandate no tuition cost more than $6,000/year without intervening in any other way,it would be intervening through _________.

According to economist Sam Peltzman,by providing a fixed level of public education,government intervention:

Why Study Public Finance

Theoretical Tools of Public Finance

Empirical Tools of Public Finance

Budget Analysis and Deficit Financing

Externalities- Problems and Solutions

Externalities in Action- Environmental and Health Externalities

Public Goods

Cost-Benefit Analysis

Political Economy

State and Local Government Expenditures

Social Insurance- the New Function of Government

Social Security

Unemployment Insurance, disability Insurance, and Workers Compensation

Health Insurance I- Health Economics and Private Health Insurance

Health Insurance Ii- Medicare, medicaid, and Health Care Reform

Income Distribution and Welfare Programs

Taxation- How It Works and What It Means

The Equity Implications of Taxation- Tax Incidence

Taxes on Labor Supply

Taxes on Savings

Taxes on Risk Taking and Wealth

Taxation of Business Income

Fundamental Tax Reform and Consumption Tax

Filters

If the government were to directly operate schools,it would be intervening through _.If the government were to require that everyone attend school through age 16 without intervening in any other way,it would be intervening through__.

Competitive pressures faced by schools are likely to be _ when there are ___ other communities nearby than when there are not.

If the government were to give every student a voucher to redeem at any school,it would be intervening through _.If the government were to mandate no tuition cost more than $6,000/year without intervening in any other way,it would be intervening through _.